Bloomsbury hopes to benefit from another Harry Potter re-issue

Thursday 26 August 2010 10.00 EDT
First published on Thursday 26 August 2010 10.00 EDT

If there really isn't anyone who hasn't bought or at least read the Harry Potter books, publisher Bloomsbury is helpfully reissuing the series with new covers in November to coincide with the release of the latest film, the first part of Harry Potter and the Deathly Hallows.

It is also hoping its successful Eat, Pray, Love book will be boosted further by the forthcoming film starring Julia Roberts, and as if that were not enough, there is a repackaging of the Wombles books. Other titles it expects to do well include Hugh Fearnley Whittingstall's River Cottage series and Howard Jacobson's The Finckler Question, longlisted for the Man Booker prize. Most bases covered there, then.

Along with half year results showing profits edging up from £1.2m to £1.3m - helped by the likes of Operation Mincemeat and Alex's Adventures in Numberland, the company said it was also positioning itself for the move towards e-books. Bloomsbury shares have dipped 1.5p to 111.75p but following this morning's analysts meeting, Lorna Tilbian at Numis Securities has raised her target price from 122p to 135p and her rating from hold to buy. She said:

The Bloomsbury analysts' meeting was very encouraging. The company provided more detail on both the drivers for growth in the trade division and the digital opportunities available to the group. Whilst we are confirming and maintaining our 2010 and 2011 forecasts [of £m and £9.5m]we highlight the potential for upside from the re-release of the Harry Potter series to coincide with the final film (
Harry Potter and the Deathly Hallows), and the film release of
Eat, Pray, Love which we believe could drive further sales of a book which is already a bestseller in the US and UK.

Furthermore, we see potential in the group's digital developments. We believe that, bolstered by recent senior management appointments, Bloomsbury is increasingly well-positioned to be a beneficiary of the structural change in digital publishing. We highlight the recent collaboration with the Churchill Archive Trust to digitise and electronically publish the papers of Winston Churchill and believe the group's experience in both trade and academic means it could achieve further such agreements. Whilst we highlight profitability is second half weighted in an uncertain consumer environment, we see upside to the current share price.